Net Promoter Score (NPS)

Net Promoter Score (NPS) is a customer loyalty score calculated by asking customers one question:

 

“On a scale from 0 to 10, how likely are you to recommend this product/company to a friend or colleague?”

Data from this question helps businesses improve upon customer service, support, and delivery, for increased customer loyalty. Businesses also use this research metric to identify business growth. The higher the NPS, the more likely a customer is going to recommend a company’s product or service

How is NPS calculated?

NPS is calculated by subtracting the percentage of customers who answer the NPS question with a 6 or lower (known as ‘detractors’) from the percentage of customers who answer with a 9 or 10 (known as ‘promoters’). Customers who answer 7 or 8 (known as ‘passives’) are not included in the overall metric. Your Net Promoter Score can range from -100 to +100. At -100, every single person who responds is a detractor, they would not recommend you and they are likely to leave bad reviews of your product or service. Anything higher than 0 is a good score. Anything higher than 50 is excellent and higher than 80 is world class.

NPS = % Promoter – % Detractors

So how do you gather this Insight?

Implementing NPS into your research strategy can be done in two ways. The first is to include the question in your mystery shopping assessment criteria, which will establish whether prospective customers would recommend your product or service. The second is to include the question into your voice of the customer feedback surveys, to establish whether your current customers would recommend your product or service.

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